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Mattel Shares Drop 28% After Toy Maker’s Holiday Sales Sputter

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Mattel MAT -24.98%decrease; red down pointing triangle shares plunged as much as 28% in late trading after the toy maker said an anticipated surge in holiday sales came up short, and it issued a lower-than-expected profit forecast for 2026. 

The shortfall in sales in the critical weeks before Christmas prompted the maker of Barbie dolls and Hot Wheels cars to step up discounts, it said, putting a squeeze on profit margins. Both sales and profit came in below Wall Street expectations for the fourth quarter.

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